Sonos (SONO) 10-Q 6 Feb 20 2020 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Dec. 28, 2019	Jan. 25, 2020
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 28, 2019
Document Transition Report	false
Entity File Number	001-38603
Entity Registrant Name	SONOS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	03-0479476
Entity Address, Address Line One	614 Chapala Street
Entity Address, City or Town	Santa Barbara
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	93101
City Area Code	805
Local Phone Number	965-3001
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	SONO
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		110,001,870
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001314727
Current Fiscal Year End Date	--10-03

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 28, 2019	Sep. 28, 2019
Current assets:
Cash and cash equivalents	$ 408,419	$ 338,641
Restricted cash	183	179
Accounts receivable, net of allowances	135,902	102,743
Inventories	113,117	219,784
Prepaids and other current assets	30,986	17,762
Total current assets	688,607	679,109
Property and equipment, net	81,474	78,139
Operating lease right-of-use assets	60,007
Intangible assets and goodwill	40,539	1,018
Deferred tax assets	1,133	1,154
Other noncurrent assets	2,169	2,185
Total assets	873,929	761,605
Current liabilities:
Accounts payable	191,364	251,941
Accrued expenses	90,822	69,856
Accrued compensation	28,339	41,142
Short-term debt	9,439	8,333
Deferred revenue, current	14,604	13,654
Other current liabilities	40,552	17,548
Total current liabilities	375,120	402,474
Operating lease liabilities, noncurrent	58,589
Long-term debt	23,192	24,840
Deferred revenue, noncurrent	47,042	42,795
Other noncurrent liabilities	2,707	10,568
Total liabilities	506,650	480,677
Commitments and contingencies (Note 8)
Stockholders’ equity:
Common stock, $0.001 par value	111	110
Treasury stock	(18,576)	(13,498)
Additional paid-in capital	523,929	502,757
Accumulated deficit	(137,602)	(208,377)
Accumulated other comprehensive loss	(583)	(64)
Total stockholders’ equity	367,279	280,928
Total liabilities and stockholders’ equity	$ 873,929	$ 761,605

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 28, 2019	Sep. 28, 2019
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Income Statement [Abstract]
Revenue	$ 562,083	$ 496,371
Cost of revenue	334,463	301,082
Gross profit	227,620	195,289
Operating expenses
Research and development	52,526	37,095
Sales and marketing	77,423	65,852
General and administrative	30,209	23,823
Total operating expenses	160,158	126,770
Operating income	67,462	68,519
Other income (expense), net
Interest income	998	273
Interest expense	(453)	(671)
Other income (expense), net	4,424	(3,999)
Total other income (expense), net	4,969	(4,397)
Income before provision for income taxes	72,431	64,122
Provision for income taxes	1,656	2,455
Net income	70,775	61,667
Net income attributable to common stockholders:
Basic	70,775	61,667
Diluted	$ 70,775	$ 61,667
Basic (in USD per share)	$ 0.65	$ 0.62
Diluted (in USD per share)	$ 0.60	$ 0.55
Weighted-average shares used in computing net loss per share attributable to common stockholders:
Basic (in shares)	108,984,683	100,148,106
Diluted (in shares)	118,415,968	112,088,672
Total comprehensive loss
Net income	$ 70,775	$ 61,667
Change in foreign currency translation adjustment	(519)	509
Comprehensive income	$ 70,256	$ 62,176

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Treasury Stock	Accumulated Deficit	Accumulated Other Comprehensive Loss
Balance, beginning of period (in shares) at Sep. 29, 2018		100,868,250		(807,040)
Balance, beginning of period at Sep. 29, 2018	$ 208,358	$ 101	$ 424,617	$ (11,072)	$ (203,611)	$ (1,677)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock pursuant to equity incentive plans (in shares)		174,453
Issuance of common stock pursuant to equity incentive plans	462	$ 0	462
Stock-based compensation expense	9,032		9,032
Net income	61,667				61,667
Change in foreign currency translation adjustment	509					509
Balance, end of period (in shares) at Dec. 29, 2018		101,042,703		(807,040)
Balance, ending of period at Dec. 29, 2018	280,028	$ 101	434,111	$ (11,072)	(141,944)	(1,168)
Balance, beginning of period (in shares) at Sep. 28, 2019		109,623,417		(1,020,775)
Balance, beginning of period at Sep. 28, 2019	$ 280,928	$ 110	502,757	$ (13,498)	(208,377)	(64)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock pursuant to equity incentive plans (in shares)	1,136,193	1,561,696
Issuance of common stock pursuant to equity incentive plans	$ 7,969	$ 1	7,968
Purchase of treasury stock (in shares)	(227,241)			(372,149)
Purchase of treasury stock	$ (5,078)			$ (5,078)
Stock-based compensation expense	13,204		13,204
Net income	70,775				70,775
Change in foreign currency translation adjustment	(519)					(519)
Balance, end of period (in shares) at Dec. 28, 2019		111,185,113		(1,392,924)
Balance, ending of period at Dec. 28, 2019	$ 367,279	$ 111	$ 523,929	$ (18,576)	$ (137,602)	$ (583)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Cash flows from operating activities
Net income	$ 70,775	$ 61,667
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	9,105	9,867
Stock-based compensation expense	13,204	9,032
Other	1,471	475
Deferred income taxes	51	226
Foreign currency transaction (gain) loss	(1,924)	1,318
Changes in operating assets and liabilities:
Accounts receivable, net	(31,411)	(49,324)
Inventories, net	107,343	81,621
Other assets	(11,853)	(3,092)
Accounts payable and accrued expenses	(39,416)	(21,413)
Accrued compensation	(14,568)	(14,450)
Deferred revenue	4,879	4,598
Other liabilities	11,184	11,525
Net cash provided by operating activities	118,840	92,050
Cash flows from investing activities
Purchases of property and equipment	(15,914)	(5,372)
Cash paid for acquisition, net of acquired cash	(35,622)	0
Net cash used in investing activities	(51,536)	(5,372)
Cash flows from financing activities
Repayments of borrowings	(1,667)	0
Payments for purchase of treasury stock	(5,078)	0
Proceeds from exercise of common stock options	7,969	462
Payments of offering costs	0	(567)
Net cash provided by (used in) financing activities	1,224	(105)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	1,254	(133)
Net increase in cash, cash equivalents and restricted cash	69,782	86,440
Cash, cash equivalents and restricted cash
Beginning of period	338,820	221,120
End of period	408,602	307,560
Supplemental disclosure
Cash paid for interest	472	658
Cash paid for taxes, net of refunds	517	1,312
Cash paid for amounts included in the measurement of lease liabilities	4,304
Supplemental disclosure of non-cash investing and financing activities
Purchases of property and equipment in accounts payable and accrued expenses	7,908	2,803
Right-of-use assets obtained in exchange for new operating lease liabilities	74,683
Deferred offering costs in accounts payable and accrued expenses	$ 0	$ 18

Business overview and basis of

Business overview and basis of presentation	3 Months Ended
	Dec. 28, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business overview and basis of presentation	Business overview and basis of presentation Description of business Sonos, Inc. and its wholly owned subsidiaries (collectively, “Sonos,” the “Company,” “we,” “us” or “our”) designs, develops, manufactures and sells audio products. The Sonos sound system provides customers with an immersive listening experience created by the design of its speakers and components, a proprietary software platform and the ability to stream content from a variety of sources over the customer’s wireless network or over Bluetooth. The Company’s products are sold through third-party physical retailers, including custom installers of home audio systems. The Company also sells through select e-commerce retailers and its website sonos.com. The Company’s products are distributed in over 50 countries through its wholly owned subsidiaries: Sonos Europe B.V. in the Netherlands, Beijing Sonos Technology Co. Ltd. in China, Sonos Japan GK in Japan and Sonos Australia Pty Ltd. in Australia. Basis of presentation and preparation The accompanying condensed consolidated financial statements are unaudited. The condensed consolidated balance sheet as of December 28, 2019 has been derived from the audited financial statements of the Company. The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information, and in management’s opinion, includes all adjustments, consisting of only normal recurring adjustments, necessary for the fair statement of the Company’s financial position, its results of operations and its cash flows for the interim periods presented. The results of operations for the three months ended December 28, 2019 are not necessarily indicative of the results to be expected for the full fiscal year or any other period. On November 14, 2019, the Company completed the acquisition of 100% of the equity interests in Snips SAS ("Snips"), a France-based provider of an artificial intelligence voice technology. The results of Snips operations have been included in the Company’s consolidated results of operations since the date of acquisition. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 28, 2019 (the “Annual Report”), filed with the Securities and Exchange Commission (“SEC”) on November 25, 2019 . Certain prior period amounts have been reclassified to conform to the current period presentation. The Company operates on a 52- week or 53- week fiscal year ending on the Saturday nearest September 30 each year. The Company’s fiscal year is divided into four quarters of 13 weeks, each beginning on a Sunday and containing two 4-week periods followed by a 5-week period. An additional week is included in the fourth fiscal quarter approximately every five years to realign fiscal quarters with calendar quarters. This last occurred in the fourth quarter of the Company’s fiscal year ended October 3, 2015 and will reoccur this fiscal year ending October 3, 2020. The three months ended December 28, 2019 and December 29, 2018 spanned 13 weeks each. As used in this Quarterly Report on Form 10-Q, “fiscal 2020 ” refers to the fiscal year ending October 3, 2020 and “fiscal 2019 ” refers to the fiscal year ended September 28, 2019 . Use of estimates and judgments The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, the Company evaluates its estimates and judgments compared to historical experience and expected trends.

Summary of significant accounti

Summary of significant accounting policies	3 Months Ended
	Dec. 28, 2019
Accounting Policies [Abstract]
Summary of significant accounting policies	Summary of significant accounting policies There have been no changes in the Company’s significant accounting policies, recently adopted accounting pronouncements or recent accounting pronouncements pending adoption from those disclosed in the Annual Report, except as noted below. Business combinations The Company uses the acquisition method of accounting for business combinations and recognizes assets acquired and liabilities assumed measured at their fair values on the date acquired. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net acquisition date fair value of the assets acquired and the liabilities assumed. The Company uses best estimates and assumptions, including but not limited to, future expected cash flows, expected asset lives and discount rates, to assign a fair value to the tangible and intangible assets acquired and liabilities assumed in business combinations as of the acquisition date. These estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed may be recorded, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired and liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations and comprehensive income. Recently adopted accounting pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases, and other subsequent amendments to the initial guidance (collectively referred to as "Topic 842"), which modifies lease accounting in order to increase transparency and comparability among entities. Topic 842 requires lessees to recognize operating leases as right–of–use assets and lease liabilities on the balance sheets. The lease liabilities are initially measured at the present value of the lease payments. The Company adopted Topic 842 as of September 29, 2019, using the modified retrospective method under ASU 2018-11. As such, prior periods were not retrospectively adjusted. There was no cumulative effect to accumulated deficit upon adoption. The Company elected the transition package of three practical expedients permitted within the standard, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification and initial direct costs. Adoption of the new standard resulted in the recording of right-of-use assets and operating lease liabilities of approximately $63.7 million and $73.7 million, respectively on September 29, 2019, with an increase to total assets and liabilities of approximately $62.5 million. The difference between the right-of-use assets and lease liabilities is primarily attributable to deferred rent and rent incentives. There was no impact on the Company's condensed consolidated statement of operations and comprehensive income or condensed consolidated statements of cash flows. See Note 6. Leases for further information on leases. Internal-use software In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract . The new guidance aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract, with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. In the first quarter of fiscal 2020, the Company prospectively adopted this standard. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. Recent accounting pronouncements pending adoption In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and other subsequent amendments including ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses (collectively referred to as "Topic 326") which provides a new impairment model that requires measurement and recognition of expected credit losses for most financial assets and certain other instruments, including but not limited to accounts receivable and available for sale debt securities. The standard will be effective for the Company in the first quarter of fiscal 2021. The Company is currently evaluating the impact on the Company's consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill , which simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. The second step measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill. Under the new guidance, a company will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value. The standard will be effective for the Company in the first quarter of fiscal 2021, with early adoption permitted. The Company is currently evaluating the timing of adoption and impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . The new standard eliminates disclosures such as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and adds new disclosure requirements for Level 3 measurements. The standard will be effective for the Company in the first quarter of fiscal 2021, with early adoption permitted. The Company is currently evaluating the timing of adoption and impact on the Company's consolidated financial statements. In November 2018, the FASB issued ASU No. 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 . This standard resolves the diversity in practice concerning whether certain transactions between collaborative arrangement participants should be accounted for as revenue under Accounting Standards Codification 606, Revenue from Contracts with Customers ("Topic 606"). This standard specifies when a participant is a customer in a collaboration, adds unit of account guidance to align with Topic 606 and provides presentation guidance for collaborative arrangements. This standard will be effective for the Company in the first quarter of fiscal 2021, with early adoption permitted. The Company is currently evaluating the timing of adoption and impact on the Company's consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 as well as by improving consistent application of the topic by clarifying and amending existing guidance. This standard will be effective for the Company in the first quarter of fiscal 2022, with early adoption permitted. The Company is currently evaluating the timing of adoption and impact on the Company's consolidated financial statements.

Fair value measurements

Fair value measurements	3 Months Ended
	Dec. 28, 2019
Fair Value Disclosures [Abstract]
Fair value measurements	Fair value measurements The carrying values of the Company’s financial instruments, including accounts receivable and accounts payable, approximate their fair values due to the short period of time to maturity or repayment. The carrying values of the Company’s long-term debt approximate their fair values as of December 28, 2019 and September 28, 2019 as the debt carries a variable rate or market rates that approximate those currently available to the Company. The following table summarizes fair value measurements by level for the assets measured at fair value on a recurring basis as of December 28, 2019 and September 28, 2019 : December 28, 2019 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds (cash equivalents) $ 240,291 $ — $ — $ 240,291 September 28, 2019 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds (cash equivalents) $ 267,806 $ — $ — $ 267,806

Revenue and geographic informat

Revenue and geographic information	3 Months Ended
	Dec. 28, 2019
Revenue from Contract with Customer [Abstract]
Revenue and geographic information	Revenue and geographic information Disaggregation of revenue Revenue by geographical region includes the applicable service revenue attributable to each region and is based on ship-to address, as follows: Three Months Ended December 28, 2019 December 29, 2018 (In thousands) Americas $ 303,194 $ 258,727 Europe, Middle East and Africa (“EMEA”) 212,738 216,080 Asia Pacific (“APAC”) 46,151 21,564 Total revenue $ 562,083 $ 496,371 Revenue is attributed to individual countries based on ship-to address and includes the applicable service revenue attributable to each country. Revenue by significant countries is as follows: Three Months Ended December 28, 2019 December 29, 2018 (In thousands) United States $ 277,273 $ 237,112 Germany 58,988 56,055 United Kingdom 49,307 54,497 Other countries 176,515 148,707 Total revenue $ 562,083 $ 496,371 In the first quarter of fiscal 2020, the Company began reporting product revenue in the following categories: Sonos speakers, Sonos system products and Partner products and other revenue to further align revenue reporting with the evolving nature of its products, customers' engagement across multiple categories and how the Company evaluates its business. Revenue by product categories includes the applicable service revenue attributable to each product category. Revenue by major product category is as follows: Three Months Ended December 28, 2019 December 29, 2018 (In thousands) Sonos speakers $ 466,677 $ 436,105 Sonos system products 61,521 52,434 Partner products and other revenue 33,885 7,832 Total revenue $ 562,083 $ 496,371

Balance sheet components

Balance sheet components	3 Months Ended
	Dec. 28, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance sheet components	Balance sheet components Accounts receivable, net of allowances Accounts receivable, net of allowances, consist of the following: December 28, 2019 September 28, 2019 (In thousands) Accounts receivable $ 188,910 $ 124,049 Allowance for doubtful accounts (1,372 ) (1,255 ) Allowance for sales incentives (51,636 ) (20,051 ) Accounts receivable, net of allowances $ 135,902 $ 102,743 Inventories Inventories consist of the following: December 28, 2019 September 28, 2019 (In thousands) Finished goods $ 104,348 $ 207,723 Component parts 8,769 12,061 Inventories $ 113,117 $ 219,784 The Company writes down inventory as a result of excess and obsolete inventories, or when it believes that the net realizable value of inventories is less than the carrying value. Goodwill The following table presents details of our goodwill during the three months ended December 28, 2019 : (In thousands) Balance as of September 28, 2019 $ 1,005 Goodwill acquired 14,282 Balance as of December 28, 2019 $ 15,287 Purchased intangible assets As part of the acquisition of Snips, the Company recognized a $20.1 million intangible asset related to in-process research and development activity, which is not subject to amortization for the current period. In addition, the Company recognized $5.1 million in intangible assets subject to amortization, with a weighted-average useful life of approximately 5.0 years . The following table summarizes estimated future amortization expense of our intangible assets as of December 28, 2019 : Fiscal years (In thousands) Remaining part of 2020 $ 910 2021 1,040 2022 1,022 2023 1,020 2024 1,020 2025 and thereafter 128 Total future amortization expense $ 5,140 Accrued expenses Accrued expenses consist of the following: December 28, 2019 September 28, 2019 (In thousands) Accrued advertising and marketing $ 31,205 $ 25,662 Accrued taxes 13,041 4,388 Accrued inventory 8,600 6,494 Accrued manufacturing, logistics and product development 21,729 14,783 Accrued general and administrative expenses 8,615 12,455 Other accrued payables 7,632 6,074 Total accrued expenses $ 90,822 $ 69,856 Deferred revenue Amounts invoiced in advance of revenue recognition are recorded as deferred revenue on the condensed consolidated balance sheets. Deferred revenue primarily relates to revenue allocated to unspecified software upgrades and platform services. The following table presents the changes in the Company’s deferred revenue for the three months ended December 28, 2019 and December 29, 2018 : December 28, 2019 December 29, 2018 (In thousands) Deferred revenue, beginning of period $ 56,449 $ 50,967 Recognition of revenue included in beginning of period deferred revenue (3,238 ) (2,986 ) Revenue deferred, net of revenue recognized on contracts in the respective period 8,435 7,472 Deferred revenue, end of period $ 61,646 $ 55,453 The Company expects the following recognition of deferred revenue as of December 28, 2019 : For the fiscal years ending 2020 2021 2022 2023 2024 and Beyond Total (In thousands) Deferred revenue expected to be recognized $ 11,085 $ 13,384 $ 11,537 $ 9,609 $ 16,031 $ 61,646 Other current liabilities Other current liabilities consist of the following: December 28, September 28, (In thousands) Reserve for returns $ 22,631 $ 12,110 Short-term operating lease liabilities 10,792 — Product warranty liability 5,701 3,254 Other 1,428 2,184 Total other current liabilities $ 40,552 $ 17,548 The following table presents the changes in the Company’s warranty liability for the three months ended December 28, 2019 and December 29, 2018 : December 28, 2019 December 29, 2018 (In thousands) Warranty liability, beginning of period $ 3,254 $ 2,450 Provision for warranties issued during the period 5,080 5,105 Settlements of warranty claims during the period (2,633 ) (2,581 ) Warranty liability, end of period $ 5,701 $ 4,974

Leases

Leases	3 Months Ended
	Dec. 28, 2019
Leases [Abstract]
Leases	Leases The substantial majority of the Company's leases are for its office spaces and facilities, which are accounted for as operating leases. These facilities operate under leases with initial terms from one to ten years and expire at various dates through 2026. The Company determines whether an arrangement is a lease at inception if there is an identified asset and it has the right to control the identified asset for a period of time. Some of the Company's leases include options to extend the leases for up to 5 years , and some include options to terminate the leases within 1 year . The Company's lease terms are only for periods in which it has enforceable rights and are impacted by options to extend or terminate the lease only when it is reasonably certain that the Company will exercise the option. For leases with terms greater than 12 months, the Company records the related right-of-use asset and lease obligation at the present value of lease payments over the lease terms. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense is recognized on a straight-line basis over the lease term. The Company's leases do not include any residual value guarantees, bargain purchase options or asset retirement obligations. Lease agreements will typically exist with lease and non-lease components, which are accounted for separately. The Company's agreements may contain variable lease payments. The Company includes variable lease payments that depend on an index or a rate and exclude those which depend on facts or circumstances occurring after the commencement date, other than the passage of time. Most of the Company's leases do not contain an implicit interest rate; therefore, judgment was required in determining a rate that reflects what would be paid to borrow, on a collateralized basis and over a similar term, for the lease obligations. The Company takes into consideration the terms of the Company's Credit Facility, lease terms, and current interest rates to determine the incremental borrowing rate at lease commencement date. At December 28, 2019 , the Company's weighted-average discount rate was 4.11% , while the weighted-average remaining lease term was 5.34 years. As part of the supplemental cash flow disclosure, the right-of-use assets obtained in exchanged for new operating lease liabilities does not reflect the impact of prepaid or deferred rent. The components of lease expense for the three months ended December 28, 2019 were as follows: Three Months Ended December 28, 2019 (In thousands) Operating lease cost $ 3,640 Short-term lease cost 57 Variable lease cost 1,389 Total lease cost $ 5,086 For the three months ended December 28, 2019 , total rental expense was $3.6 million and total common area maintenance expense was $1.4 million . For the three months ended December 29, 2018 , total rental expense was $3.5 million and total common area maintenance expense was $1.3 million . The following table summarizes the maturity of lease liabilities under operating leases as of December 28, 2019 : Fiscal years ending Operating leases (in thousands) Remainder of fiscal 2020 $ 10,489 2021 14,970 2022 14,261 2023 14,638 2024 13,606 2025 8,349 Thereafter 1,587 Total lease payments 77,900 Less imputed interest (8,518 ) Total lease liabilities $ 69,382 Under Topic 840, the following table represents the gross minimum rental commitments under noncancelable leases as disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended September 28, 2019 : Fiscal years ending (in thousands) 2020 $ 15,627 2021 14,759 2022 14,136 2023 14,395 2024 13,615 Thereafter 10,951 Total minimum lease commitments $ 83,483

Debt

Debt	3 Months Ended
	Dec. 28, 2019
Debt Disclosure [Abstract]
Debt	Debt The Company's debt obligations consist of the Secured Credit Facility with J.P. Morgan Chase Bank, N.A. (the “Credit Facility”), the J.P. Morgan Chase Bank, N.A. Secured Term Loan (the "Term Loan") as well as debt acquired in the acquisition of Snips. The Company’s short- and long-term debt obligations as of December 28, 2019 and September 28, 2019 was as follows: December 28, 2019 September 28, 2019 Rate Balance Rate Balance (dollars in thousands) Term loan (1) 4.2 % $ 31,666 4.6 % $ 33,333 Other debt (2) 1,106 — Unamortized debt issuance costs (3) (141 ) (160 ) Total indebtedness 32,631 33,173 Less short-term portion (9,439 ) (8,333 ) Long-term debt $ 23,192 $ 24,840 (1) Due in October 2021 and bears interest at a variable rate equal to an adjusted LIBOR plus 2.25% and is payable quarterly. (2) Other debt consists of debt acquired through recent acquisition activity and was settled subsequent to the period of this report in January 2020. (3) Debt issuance costs are recorded as a debt discount and recorded as interest expense over the term of the agreement. The Credit Facility allows the Company to borrow up to $80.0 million restricted to the value of the borrowing base which is based on the value of inventory and accounts receivable and is subject to monthly redetermination. The Credit Facility matures in October 2021 and may be drawn as Commercial Bank Floating Rate Loans (at the higher of prime rate or adjusted LIBOR plus 2.50% ) or Eurocurrency Loans (at LIBOR plus an applicable margin). As of both December 28, 2019 and September 28, 2019 , the Company did not have any outstanding borrowings and had $ 4.5 million in undrawn letters of credit that reduce the availability under the Credit Facility. Debt obligations under the Credit Facility and the Term Loan require the Company to maintain a consolidated fixed charge ratio of at least 1.0 , restrict distribution of dividends unless certain conditions are met, such as having a fixed charge ratio of at least 1.15 , and require financial statement reporting and delivery of borrowing base certificates. As of December 28, 2019 and September 28, 2019 , the Company was in compliance with all financial covenants. The Credit Facility and the Term Loan are collateralized by eligible inventory and accounts receivable of the Company, as well as the Company's intellectual property including patents and trademarks.

Commitments and contingencies

Commitments and contingencies	3 Months Ended
	Dec. 28, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	Commitments and contingencies Legal proceedings From time to time, the Company is involved in legal proceedings in the ordinary course of business, including claims relating to employee relations, business practices and patent infringement. Litigation can be expensive and disruptive to normal business operations. Moreover, the results of complex legal proceedings are difficult to predict and the Company’s view of these matters may change in the future as the litigation and events related thereto unfold. The Company expenses legal fees as incurred. The Company records a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. An unfavorable outcome to any legal matter, if material, could have an adverse effect on the Company’s operations or its financial position, liquidity or results of operations. On March 10, 2017, Implicit, LLC (“Implicit”) filed a patent infringement action in the United States District Court, District of Delaware against the Company. Implicit is asserting that the Company infringed on two patents in this case. The Company denies the allegations. There is no assurance of a favorable outcome and the Company’s business could be adversely affected as a result of a finding that the Company patents-in-suit are invalid and/or unenforceable. A range of loss, if any, associated with this matter is not probable or reasonably estimable as of December 28, 2019 and September 28, 2019 . The Company is involved in certain other litigation matters not listed above but does not consider these matters to be material either individually or in the aggregate at this time. The Company’s view of the matters not listed may change in the future as the litigation and events related thereto unfold.

Stock-based compensation

Stock-based compensation	3 Months Ended
	Dec. 28, 2019
Share-based Payment Arrangement [Abstract]
Stock-based compensation	Stock-based compensation In 2003, the Company’s Board of Directors (the “Board”) established the 2003 Stock Plan (as amended, the “2003 Plan”). In July 2018, the Board adopted the 2018 Equity Incentive Plan (the “2018 Plan”) and ceased granting awards under the 2003 Plan. The 2018 Plan became effective in connection with the IPO. Any remaining shares of common stock available for issuance under the 2003 Plan on the effective date of the 2018 Plan were added to the shares of common stock reserved for issuance under the 2018 Plan as of such date, and additional shares of common stock that would become available for issuance under the 2003 Plan in the future will instead become available for issuance under the 2018 Plan, as further discussed in the Annual Report. Stock options Pursuant to the 2018 Plan, the Company issues stock options to employees. The fair value of the stock options is based on the Company’s closing stock price on the trading day immediately prior to the date of grant. The option price, number of shares and grant date are determined at the discretion of the Board. For so long as the optionholder performs services for the Company, the options generally vest over 48 months , with cliff vesting after one year and generally vest on a monthly or quarterly basis thereafter, and are exercisable for a period not to exceed ten years from the date of grant. The summary of the Company’s stock option activity is as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in years) (in thousands) Outstanding at September 28, 2019 37,155,568 $ 11.39 6.3 $ 94,288 Granted — Exercised (1,136,193 ) Forfeited (414,872 ) Outstanding at December 28, 2019 35,604,503 $ 11.49 6.1 $ 126,622 At December 28, 2019 Options exercisable 26,445,850 $ 10.53 5.4 $ 118,859 Options vested and expected to vest 34,363,895 $ 11.39 6.0 $ 125,725 As of December 28, 2019 and September 28, 2019 , the Company had $37.3 million and $43.9 million, respectively, of unrecognized stock-based compensation expense related to stock options, which is expected to be recognized over a weighted-average period of 1.8 and 2.0 years, respectively. Restricted stock units Pursuant to the 2018 Plan, the Company issues RSUs to employees and directors. The fair value of RSUs is based on the Company's closing stock price on the trading day immediately preceding the date of grant. RSUs typically have an initial annual cliff vest and then vest quarterly over the service period, which is generally four years. The summary of the Company’s unvested RSU activity is as follows: Number of Units Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (in thousands) Unvested at September 28, 2019 6,716,786 $ 11.40 $ 90,744 Granted 1,012,300 Vested (425,503 ) Forfeited (70,471 ) Unvested at December 28, 2019 7,233,112 $ 11.84 $ 108,569 At December 28, 2019 Units expected to vest 5,726,008 $ 11.85 $ 85,947 As of December 28, 2019 and September 28, 2019 , the Company had $ 63.2 million and $55.6 million of unrecognized stock-based compensation expense related to RSUs, which is expected to be recognized over a weighted-average period of 3.3 and 3.4 years, respectively. Stock-based compensation Total stock-based compensation expense by function category was as follows: Three Months Ended December 28, 2019 December 29, 2018 (In thousands) Cost of revenue $ 282 $ 184 Research and development 5,116 3,604 Sales and marketing 3,541 2,681 General and administrative 4,265 2,563 Total stock-based compensation expense $ 13,204 $ 9,032

Stockholders' equity

Stockholders' equity	3 Months Ended
	Dec. 28, 2019
Equity [Abstract]
Stockholders' equity	Stockholders' equity Share repurchase program In September 2019, the Board of Directors authorized a common stock repurchase program of up to $50.0 million . During the three months ended December 28, 2019, the Company repurchased 227,241 shares for an aggregate purchase price of $2.9 million at an average price of $12.85 per share under the repurchase program. The Company had $47.1

Income taxes

Income taxes	3 Months Ended
	Dec. 28, 2019
Income Tax Disclosure [Abstract]
Income taxes	Income taxes The Company’s tax provision and the resulting effective tax rate for interim periods is determined based upon its estimated annual effective tax rate, adjusted for the effect of discrete items arising in that quarter. The impact of such inclusions could result in a higher or lower effective tax rate during a particular quarter, based upon the mix and timing of actual earnings or losses versus annual projections. In each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual tax rate changes, a cumulative adjustment is made in that quarter. The Company had an income tax expense of $1.7 million and $2.5 million for the three months ended December 28, 2019 and December 29, 2018 , respectively. For the three months ended December 28, 2019 our tax expense includes a discrete income tax benefit of approximately $0.6 million as a result of a favorable release of uncertain tax positions in the U.S. coinciding with the issuance of the Base Erosion and Anti-Abuse Tax (“BEAT”) Regulations. For the three months ended December 28, 2019 and December 29, 2018 , we calculated our U.S. income tax provision using the discrete method as though the interim year to date period was an annual period. The Company believes that the application of the estimated annual effective tax rate (“AETR”) method generally required by ASC 740 is impractical for the U.S. tax provision given that normal deviations in the projected pre-tax net income (loss) in the U.S. could result in a disproportionate and unreliable effective tax rate under the AETR method. For the quarter-ended December 28, 2019 , the Company has maintained a full valuation allowance on its U.S. deferred tax assets due to its history of U.S. operating losses. It is possible that within the next 12 months. there may be sufficient positive evidence to release a significant portion of the valuation allowance. Release of the U.S. valuation allowance would result in the establishment of certain deferred tax assets and a benefit to income tax expense for the period the release is recorded which could have a material impact on net earnings. The exact timing and amount of the valuation allowance release are subject to change based on the level of profitability achieved.

Net income (loss) per share att

Net income (loss) per share attributable to common stockholders	3 Months Ended
	Dec. 28, 2019
Earnings Per Share [Abstract]
Net income (loss) per share attributable to common stockholders	Net income per share attributable to common stockholders Basic net income attributable to common stockholders per share is calculated by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding less shares subject to repurchase. Diluted net income per share attributable to common stockholders adjusts the basic net income per share attributable to common stockholders and the weighted-average number of shares of common stock outstanding for the potentially dilutive impact of stock options and RSUs, using the treasury stock method. The following table sets forth the computation of the Company’s basic and diluted net income per share attributable to common stockholders: Three Months Ended December 28, 2019 December 29, 2018 (In thousands, except share and per share data) Numerator: Net income attributable to common stockholders - basic and diluted $ 70,775 $ 61,667 Denominator: Weighted-average shares of common stock—basic 108,984,683 100,148,106 Effect of potentially dilutive stock options 6,751,412 11,918,193 Effect of RSUs 2,679,873 22,373 Weighted-average shares of common stock—diluted 118,415,968 112,088,672 Net income per share attributable to common stockholders: Net income per share attributable to common stockholders - basic $ 0.65 $ 0.62 Net income per share attributable to common stockholders - diluted $ 0.60 $ 0.55 The following potentially dilutive shares were excluded from the computation of diluted net income per share attributable to common stockholders because including them would have been antidilutive: Three Months Ended December 28, 2019 December 29, 2018 Stock options to purchase common stock 29,628,623 36,135,411 Restricted stock units 4,278,556 247,744 Total 33,907,179 36,383,155

Business combination

Business combination	3 Months Ended
	Dec. 28, 2019
Business Combinations [Abstract]
Business combination	Business combination On November 14, 2019, the Company completed the acquisition of 100% of the equity interests of Snips, a France-based provider of an artificial intelligence voice platform for connected devices that provides private-by-design, voice technology. The acquisition brought a talented group of employees and strategic IP to enhance the voice experience on Sonos products. The total purchase price consideration of the acquisition of Snips was $36.3 million , of which $35.6 million was paid in cash at closing and $0.7 million was recorded as a contingent consideration liability. The terms of the contingent consideration were met and the contingent consideration was paid in cash subsequent to the period of this report. The Company accounted for this transaction as a business combination and allocated the purchase consideration to assets acquired and liabilities assumed, with $25.2 million in intangible assets, $3.2 million in net liabilities assumed, and $14.3 million in estimated goodwill. The goodwill recognized was primarily attributable to the assembled workforce and expected post-acquisition synergies from integrating Snips’ technology into the Company's products. The goodwill is not deductible for income tax purposes. The results of Snips' operations have been included in, but are not material to the Company's consolidated results of operations since the date of acquisition. Pro forma results of operations have not been presented because the effect of the acquisition was not material to the Company's condensed consolidated statement of operations and comprehensive income. One-time acquisition-related costs of $1.4 million were expensed as general and administrative expenses as incurred.

Subsequent events

Subsequent events	3 Months Ended
	Dec. 28, 2019
Subsequent Events [Abstract]
Subsequent events	Subsequent event On January 7, 2020, the Company filed a complaint with the U.S. International Trade Commission against Alphabet Inc. and Google LLC and a lawsuit in the U.S. District Court for the Central District of California against Google LLC. The complaint and lawsuit each allege patent infringement of certain Sonos patents related to its smart speakers and related technology.

Business overview and basis o_2

Business overview and basis of presentation (Policies)	3 Months Ended
	Dec. 28, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of presentation and preparation	Basis of presentation and preparation The accompanying condensed consolidated financial statements are unaudited. The condensed consolidated balance sheet as of December 28, 2019 has been derived from the audited financial statements of the Company. The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information, and in management’s opinion, includes all adjustments, consisting of only normal recurring adjustments, necessary for the fair statement of the Company’s financial position, its results of operations and its cash flows for the interim periods presented. The results of operations for the three months ended December 28, 2019 are not necessarily indicative of the results to be expected for the full fiscal year or any other period. On November 14, 2019, the Company completed the acquisition of 100% of the equity interests in Snips SAS ("Snips"), a France-based provider of an artificial intelligence voice technology. The results of Snips operations have been included in the Company’s consolidated results of operations since the date of acquisition. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 28, 2019 (the “Annual Report”), filed with the Securities and Exchange Commission (“SEC”) on November 25, 2019 . Certain prior period amounts have been reclassified to conform to the current period presentation. The Company operates on a 52- week or 53- week fiscal year ending on the Saturday nearest September 30 each year. The Company’s fiscal year is divided into four quarters of 13 weeks, each beginning on a Sunday and containing two 4-week periods followed by a 5-week period. An additional week is included in the fourth fiscal quarter approximately every five years to realign fiscal quarters with calendar quarters. This last occurred in the fourth quarter of the Company’s fiscal year ended October 3, 2015 and will reoccur this fiscal year ending October 3, 2020. The three months ended December 28, 2019 and December 29, 2018 spanned 13 weeks each. As used in this Quarterly Report on Form 10-Q, “fiscal 2020 ” refers to the fiscal year ending October 3, 2020 and “fiscal 2019 ” refers to the fiscal year ended September 28, 2019 .
Use of estimates and judgment	Use of estimates and judgments The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, the Company evaluates its estimates and judgments compared to historical experience and expected trends.
Recently adopted accounting pronouncements and recent accounting pronouncements pending adoption	Recently adopted accounting pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases, and other subsequent amendments to the initial guidance (collectively referred to as "Topic 842"), which modifies lease accounting in order to increase transparency and comparability among entities. Topic 842 requires lessees to recognize operating leases as right–of–use assets and lease liabilities on the balance sheets. The lease liabilities are initially measured at the present value of the lease payments. The Company adopted Topic 842 as of September 29, 2019, using the modified retrospective method under ASU 2018-11. As such, prior periods were not retrospectively adjusted. There was no cumulative effect to accumulated deficit upon adoption. The Company elected the transition package of three practical expedients permitted within the standard, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification and initial direct costs. Adoption of the new standard resulted in the recording of right-of-use assets and operating lease liabilities of approximately $63.7 million and $73.7 million, respectively on September 29, 2019, with an increase to total assets and liabilities of approximately $62.5 million. The difference between the right-of-use assets and lease liabilities is primarily attributable to deferred rent and rent incentives. There was no impact on the Company's condensed consolidated statement of operations and comprehensive income or condensed consolidated statements of cash flows. See Note 6. Leases for further information on leases. Internal-use software In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract . The new guidance aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract, with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. In the first quarter of fiscal 2020, the Company prospectively adopted this standard. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. Recent accounting pronouncements pending adoption In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and other subsequent amendments including ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses (collectively referred to as "Topic 326") which provides a new impairment model that requires measurement and recognition of expected credit losses for most financial assets and certain other instruments, including but not limited to accounts receivable and available for sale debt securities. The standard will be effective for the Company in the first quarter of fiscal 2021. The Company is currently evaluating the impact on the Company's consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill , which simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. The second step measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill. Under the new guidance, a company will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value. The standard will be effective for the Company in the first quarter of fiscal 2021, with early adoption permitted. The Company is currently evaluating the timing of adoption and impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . The new standard eliminates disclosures such as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and adds new disclosure requirements for Level 3 measurements. The standard will be effective for the Company in the first quarter of fiscal 2021, with early adoption permitted. The Company is currently evaluating the timing of adoption and impact on the Company's consolidated financial statements. In November 2018, the FASB issued ASU No. 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 . This standard resolves the diversity in practice concerning whether certain transactions between collaborative arrangement participants should be accounted for as revenue under Accounting Standards Codification 606, Revenue from Contracts with Customers ("Topic 606"). This standard specifies when a participant is a customer in a collaboration, adds unit of account guidance to align with Topic 606 and provides presentation guidance for collaborative arrangements. This standard will be effective for the Company in the first quarter of fiscal 2021, with early adoption permitted. The Company is currently evaluating the timing of adoption and impact on the Company's consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 as well as by improving consistent application of the topic by clarifying and amending existing guidance. This standard will be effective for the Company in the first quarter of fiscal 2022, with early adoption permitted. The Company is currently evaluating the timing of adoption and impact on the Company's consolidated financial statements.

Fair value measurements (Tables

Fair value measurements (Tables)	3 Months Ended
	Dec. 28, 2019
Fair Value Disclosures [Abstract]
Summary of fair value measurements by level for the assets measured on a recurring basis	The following table summarizes fair value measurements by level for the assets measured at fair value on a recurring basis as of December 28, 2019 and September 28, 2019 : December 28, 2019 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds (cash equivalents) $ 240,291 $ — $ — $ 240,291 September 28, 2019 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds (cash equivalents) $ 267,806 $ — $ — $ 267,806

Revenue and geographic inform_2

Revenue and geographic information (Tables)	3 Months Ended
	Dec. 28, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of revenue	Revenue by geographical region includes the applicable service revenue attributable to each region and is based on ship-to address, as follows: Three Months Ended December 28, 2019 December 29, 2018 (In thousands) Americas $ 303,194 $ 258,727 Europe, Middle East and Africa (“EMEA”) 212,738 216,080 Asia Pacific (“APAC”) 46,151 21,564 Total revenue $ 562,083 $ 496,371 Revenue is attributed to individual countries based on ship-to address and includes the applicable service revenue attributable to each country. Revenue by significant countries is as follows: Three Months Ended December 28, 2019 December 29, 2018 (In thousands) United States $ 277,273 $ 237,112 Germany 58,988 56,055 United Kingdom 49,307 54,497 Other countries 176,515 148,707 Total revenue $ 562,083 $ 496,371 In the first quarter of fiscal 2020, the Company began reporting product revenue in the following categories: Sonos speakers, Sonos system products and Partner products and other revenue to further align revenue reporting with the evolving nature of its products, customers' engagement across multiple categories and how the Company evaluates its business. Revenue by product categories includes the applicable service revenue attributable to each product category. Revenue by major product category is as follows: Three Months Ended December 28, 2019 December 29, 2018 (In thousands) Sonos speakers $ 466,677 $ 436,105 Sonos system products 61,521 52,434 Partner products and other revenue 33,885 7,832 Total revenue $ 562,083 $ 496,371

Balance sheet components (Table

Balance sheet components (Tables)	3 Months Ended
	Dec. 28, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of accounts receivable	Accounts receivable, net of allowances, consist of the following: December 28, 2019 September 28, 2019 (In thousands) Accounts receivable $ 188,910 $ 124,049 Allowance for doubtful accounts (1,372 ) (1,255 ) Allowance for sales incentives (51,636 ) (20,051 ) Accounts receivable, net of allowances $ 135,902 $ 102,743
Schedule of inventories, net	Inventories consist of the following: December 28, 2019 September 28, 2019 (In thousands) Finished goods $ 104,348 $ 207,723 Component parts 8,769 12,061 Inventories $ 113,117 $ 219,784
Schedule of goodwill	The following table presents details of our goodwill during the three months ended December 28, 2019 : (In thousands) Balance as of September 28, 2019 $ 1,005 Goodwill acquired 14,282 Balance as of December 28, 2019 $ 15,287
Schedule of finite-lived intangible assets, future amortization expense	The following table summarizes estimated future amortization expense of our intangible assets as of December 28, 2019 : Fiscal years (In thousands) Remaining part of 2020 $ 910 2021 1,040 2022 1,022 2023 1,020 2024 1,020 2025 and thereafter 128 Total future amortization expense $ 5,140
Schedule of accrued expenses	Accrued expenses consist of the following: December 28, 2019 September 28, 2019 (In thousands) Accrued advertising and marketing $ 31,205 $ 25,662 Accrued taxes 13,041 4,388 Accrued inventory 8,600 6,494 Accrued manufacturing, logistics and product development 21,729 14,783 Accrued general and administrative expenses 8,615 12,455 Other accrued payables 7,632 6,074 Total accrued expenses $ 90,822 $ 69,856
Changes in deferred balances and expected revenue recognition	The following table presents the changes in the Company’s deferred revenue for the three months ended December 28, 2019 and December 29, 2018 : December 28, 2019 December 29, 2018 (In thousands) Deferred revenue, beginning of period $ 56,449 $ 50,967 Recognition of revenue included in beginning of period deferred revenue (3,238 ) (2,986 ) Revenue deferred, net of revenue recognized on contracts in the respective period 8,435 7,472 Deferred revenue, end of period $ 61,646 $ 55,453
Remaining performance obligation	The Company expects the following recognition of deferred revenue as of December 28, 2019 : For the fiscal years ending 2020 2021 2022 2023 2024 and Beyond Total (In thousands) Deferred revenue expected to be recognized $ 11,085 $ 13,384 $ 11,537 $ 9,609 $ 16,031 $ 61,646
Schedule of other current liabilities	Other current liabilities consist of the following: December 28, September 28, (In thousands) Reserve for returns $ 22,631 $ 12,110 Short-term operating lease liabilities 10,792 — Product warranty liability 5,701 3,254 Other 1,428 2,184 Total other current liabilities $ 40,552 $ 17,548
Schedule of product warranty liability	The following table presents the changes in the Company’s warranty liability for the three months ended December 28, 2019 and December 29, 2018 : December 28, 2019 December 29, 2018 (In thousands) Warranty liability, beginning of period $ 3,254 $ 2,450 Provision for warranties issued during the period 5,080 5,105 Settlements of warranty claims during the period (2,633 ) (2,581 ) Warranty liability, end of period $ 5,701 $ 4,974

Leases (Tables)

Leases (Tables)	3 Months Ended
	Dec. 28, 2019
Leases [Abstract]
Components of Lease Expense	The components of lease expense for the three months ended December 28, 2019 were as follows: Three Months Ended December 28, 2019 (In thousands) Operating lease cost $ 3,640 Short-term lease cost 57 Variable lease cost 1,389 Total lease cost $ 5,086
Maturity of Lease Liabilities	The following table summarizes the maturity of lease liabilities under operating leases as of December 28, 2019 : Fiscal years ending Operating leases (in thousands) Remainder of fiscal 2020 $ 10,489 2021 14,970 2022 14,261 2023 14,638 2024 13,606 2025 8,349 Thereafter 1,587 Total lease payments 77,900 Less imputed interest (8,518 ) Total lease liabilities $ 69,382
Schedule of Future Minimum Rental Payments for Operating Leases	Under Topic 840, the following table represents the gross minimum rental commitments under noncancelable leases as disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended September 28, 2019 : Fiscal years ending (in thousands) 2020 $ 15,627 2021 14,759 2022 14,136 2023 14,395 2024 13,615 Thereafter 10,951 Total minimum lease commitments $ 83,483

Debt (Tables)

Debt (Tables)	3 Months Ended
	Dec. 28, 2019
Debt Disclosure [Abstract]
Schedule of short and long term debt	The Company’s short- and long-term debt obligations as of December 28, 2019 and September 28, 2019 was as follows: December 28, 2019 September 28, 2019 Rate Balance Rate Balance (dollars in thousands) Term loan (1) 4.2 % $ 31,666 4.6 % $ 33,333 Other debt (2) 1,106 — Unamortized debt issuance costs (3) (141 ) (160 ) Total indebtedness 32,631 33,173 Less short-term portion (9,439 ) (8,333 ) Long-term debt $ 23,192 $ 24,840 (1) Due in October 2021 and bears interest at a variable rate equal to an adjusted LIBOR plus 2.25% and is payable quarterly. (2) Other debt consists of debt acquired through recent acquisition activity and was settled subsequent to the period of this report in January 2020. (3) Debt issuance costs are recorded as a debt discount and recorded as interest expense over the term of the agreement.

Stock-based compensation (Table

Stock-based compensation (Tables)	3 Months Ended
	Dec. 28, 2019
Share-based Payment Arrangement [Abstract]
Schedule of stock option activity	The summary of the Company’s stock option activity is as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in years) (in thousands) Outstanding at September 28, 2019 37,155,568 $ 11.39 6.3 $ 94,288 Granted — Exercised (1,136,193 ) Forfeited (414,872 ) Outstanding at December 28, 2019 35,604,503 $ 11.49 6.1 $ 126,622 At December 28, 2019 Options exercisable 26,445,850 $ 10.53 5.4 $ 118,859 Options vested and expected to vest 34,363,895 $ 11.39 6.0 $ 125,725
Schedule of restricted stock unit activity	The summary of the Company’s unvested RSU activity is as follows: Number of Units Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (in thousands) Unvested at September 28, 2019 6,716,786 $ 11.40 $ 90,744 Granted 1,012,300 Vested (425,503 ) Forfeited (70,471 ) Unvested at December 28, 2019 7,233,112 $ 11.84 $ 108,569 At December 28, 2019 Units expected to vest 5,726,008 $ 11.85 $ 85,947
Schedule of stock-based compensation expense	Total stock-based compensation expense by function category was as follows: Three Months Ended December 28, 2019 December 29, 2018 (In thousands) Cost of revenue $ 282 $ 184 Research and development 5,116 3,604 Sales and marketing 3,541 2,681 General and administrative 4,265 2,563 Total stock-based compensation expense $ 13,204 $ 9,032

Net income (loss) per share a_2

Net income (loss) per share attributable to common stockholders (Tables)	3 Months Ended
	Dec. 28, 2019
Earnings Per Share [Abstract]
Schedule of earnings per share	The following table sets forth the computation of the Company’s basic and diluted net income per share attributable to common stockholders: Three Months Ended December 28, 2019 December 29, 2018 (In thousands, except share and per share data) Numerator: Net income attributable to common stockholders - basic and diluted $ 70,775 $ 61,667 Denominator: Weighted-average shares of common stock—basic 108,984,683 100,148,106 Effect of potentially dilutive stock options 6,751,412 11,918,193 Effect of RSUs 2,679,873 22,373 Weighted-average shares of common stock—diluted 118,415,968 112,088,672 Net income per share attributable to common stockholders: Net income per share attributable to common stockholders - basic $ 0.65 $ 0.62 Net income per share attributable to common stockholders - diluted $ 0.60 $ 0.55
Schedule of antidilutive securities	The following potentially dilutive shares were excluded from the computation of diluted net income per share attributable to common stockholders because including them would have been antidilutive: Three Months Ended December 28, 2019 December 29, 2018 Stock options to purchase common stock 29,628,623 36,135,411 Restricted stock units 4,278,556 247,744 Total 33,907,179 36,383,155

Business overview and basis o_3

Business overview and basis of presentation (Details) - country	Dec. 28, 2019	Nov. 14, 2019
Business Acquisition [Line Items]
Number of countries where products are distributed	50
Snips SAS
Business Acquisition [Line Items]
Percentage of business acquired		100.00%

Summary of significant accoun_2

Summary of significant accounting policies - Narrative (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Sep. 29, 2019	Sep. 28, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets	$ 60,007
Operating lease liabilities, noncurrent	69,382
Assets	873,929		$ 761,605
Liabilities	$ 506,650		$ 480,677
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets		$ 63,700
Operating lease liabilities, noncurrent		73,700
Assets		62,500
Liabilities		$ 62,500

Fair value measurements (Detail

Fair value measurements (Details) - Money Market Funds - USD ($) $ in Thousands	Dec. 28, 2019	Sep. 28, 2019
Assets:
Money market funds (cash equivalents)	$ 240,291	$ 267,806
Level 1
Assets:
Money market funds (cash equivalents)	240,291	267,806
Level 2
Assets:
Money market funds (cash equivalents)	0	0
Level 3
Assets:
Money market funds (cash equivalents)	$ 0	$ 0

Revenue and geographic inform_3

Revenue and geographic information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Disaggregation of Revenue [Line Items]
Revenue	$ 562,083	$ 496,371
Sonos speakers
Disaggregation of Revenue [Line Items]
Revenue	466,677	436,105
Sonos system products
Disaggregation of Revenue [Line Items]
Revenue	61,521	52,434
Partner products and other revenue
Disaggregation of Revenue [Line Items]
Revenue	33,885	7,832
Americas
Disaggregation of Revenue [Line Items]
Revenue	303,194	258,727
Europe, Middle East and Africa (“EMEA”)
Disaggregation of Revenue [Line Items]
Revenue	212,738	216,080
Asia Pacific (“APAC”)
Disaggregation of Revenue [Line Items]
Revenue	46,151	21,564
United States
Disaggregation of Revenue [Line Items]
Revenue	277,273	237,112
Germany
Disaggregation of Revenue [Line Items]
Revenue	58,988	56,055
United Kingdom
Disaggregation of Revenue [Line Items]
Revenue	49,307	54,497
Other countries
Disaggregation of Revenue [Line Items]
Revenue	$ 176,515	$ 148,707

Balance sheet components - Acco

Balance sheet components - Accounts receivable, net of allowances (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Sep. 28, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts receivable	$ 188,910	$ 124,049
Allowance for doubtful accounts	(1,372)	(1,255)
Allowance for sales incentives	(51,636)	(20,051)
Accounts receivable, net of allowances	$ 135,902	$ 102,743

Balance sheet components - Inve

Balance sheet components - Inventories, net (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Sep. 28, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Finished goods	$ 104,348	$ 207,723
Component parts	8,769	12,061
Inventories	$ 113,117	$ 219,784

Balance sheet components - Good

Balance sheet components - Goodwill (Details) $ in Thousands	3 Months Ended
	Dec. 28, 2019USD ($)
Goodwill [Roll Forward]
Goodwill beginning balance	$ 1,005
Goodwill acquired	14,282
Goodwill ending balance	$ 15,287

Balance sheet components - Fini

Balance sheet components - Finite-lived intangible assets, future amortization expense (Details) $ in Thousands	3 Months Ended
	Dec. 28, 2019USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2020	$ 910
2021	1,040
2022	1,022
2023	1,020
2024	1,020
2025	128
Total future amortization expense	5,140
Snips SAS
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets acquired	$ 5,100
Estimated weighted average useful life	5 years
Snips SAS | In progress research and development
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets acquired	$ 20,100

Balance sheet components - Accr

Balance sheet components - Accrued expenses (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Sep. 28, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued advertising and marketing	$ 31,205	$ 25,662
Accrued taxes	13,041	4,388
Accrued inventory	8,600	6,494
Accrued manufacturing, logistics and product development	21,729	14,783
Accrued general and administrative expenses	8,615	12,455
Other accrued payables	7,632	6,074
Total accrued expenses	$ 90,822	$ 69,856

Balance sheet components - Chan

Balance sheet components - Change in deferred revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Contract with Customer, Liability [Roll Forward]
Deferred revenue, beginning of period	$ 56,449	$ 50,967
Recognition of revenue included in beginning of period deferred revenue	(3,238)	(2,986)
Revenue deferred, net of revenue recognized on contracts in the respective period	8,435	7,472
Deferred revenue, end of period	$ 61,646	$ 55,453

Balance sheet components - Expe

Balance sheet components - Expected revenue recognition (Details) $ in Thousands	Dec. 28, 2019USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue expected to be recognized	$ 61,646
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-28
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied in	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-04
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied in	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-12-29
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue expected to be recognized	$ 11,085
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-03
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue expected to be recognized	$ 13,384
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-03
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied in	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-02
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue expected to be recognized	$ 11,537
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-02
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied in	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue expected to be recognized	$ 9,609
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied in
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-31
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue expected to be recognized	$ 16,031

Balance sheet components - Othe

Balance sheet components - Other current liabilities (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Sep. 28, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reserve for returns	$ 22,631	$ 12,110
Short-term operating lease liabilities	10,792	0
Product warranty liability	5,701	3,254
Other	1,428	2,184
Total other current liabilities	$ 40,552	$ 17,548

Balance sheet components - Prod

Balance sheet components - Product Warranties (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Warranty liability, beginning of period	$ 3,254	$ 2,450
Provision for warranties issued during the period	5,080	5,105
Settlements of warranty claims during the period	(2,633)	(2,581)
Warranty liability, end of period	$ 5,701	$ 4,974

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Leases [Abstract]
Term of option to extend	5 years
Termination option period	1 year
Weighted-average discount rate - operating leases	4.11%
Weighted-average remaining lease term (years) - operating leases	5 years 4 months 2 days
Rental expense	$ 3.6
Common area maintenance expense	$ 1.4	$ 1.3
Rental expense under previous guidance		$ 3.5

Leases - Components of Lease Ex

Leases - Components of Lease Expense (Details) $ in Thousands	3 Months Ended
	Dec. 28, 2019USD ($)
Leases [Abstract]
Operating lease cost	$ 3,640
Short-term lease cost	57
Variable lease cost	1,389
Total lease cost	$ 5,086

Leases - Maturity of Lease Liab

Leases - Maturity of Lease Liabilities (Details) $ in Thousands	Dec. 28, 2019USD ($)
Leases [Abstract]
Remainder of fiscal 2020	$ 10,489
2021	14,970
2022	14,261
2023	14,638
2024	13,606
2025	8,349
Thereafter	1,587
Total lease payments	77,900
Less imputed interest	(8,518)
Total lease liabilities	$ 69,382

Leases - Future Minimum Rental

Leases - Future Minimum Rental Payments (Details) $ in Thousands	Dec. 28, 2019USD ($)
Leases [Abstract]
2020	$ 15,627
2021	14,759
2022	14,136
2023	14,395
2024	13,615
2025	10,951
Total minimum lease commitments	$ 83,483

Debt - Schedule of debt (Detail

Debt - Schedule of debt (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 28, 2019	Sep. 28, 2019
Debt Disclosure [Abstract]
Debt, interest rate	4.20%	4.60%
Debt	$ 31,666	$ 33,333
Other debt	1,106	0
Unamortized debt issuance costs	(141)	(160)
Total indebtedness	32,631	33,173
Less short-term portion	(9,439)	(8,333)
Long-term debt	$ 23,192	$ 24,840
LIBOR
Debt Instrument [Line Items]
Interest rate, spread on variable rate	2.25%

Debt - Additional Information (

Debt - Additional Information (Details)	3 Months Ended
	Dec. 28, 2019USD ($)	Sep. 28, 2019USD ($)
Debt Instrument [Line Items]
Fixed charge ratio, covenant one	1
Fixed charge ratio, covenant two	1.15
Letter of Credit
Debt Instrument [Line Items]
Unused borrowing capacity		$ 4,500,000
Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 80,000,000
Credit Facility | Letter of Credit
Debt Instrument [Line Items]
Unused borrowing capacity	$ 4,500,000
LIBOR
Debt Instrument [Line Items]
Interest rate, spread on variable rate	2.25%
LIBOR | Credit Facility
Debt Instrument [Line Items]
Interest rate, spread on variable rate	2.50%

Commitments and contingencies (

Commitments and contingencies (Details)	Mar. 10, 2017patent
Implicit, LLC
Long-term Purchase Commitment [Line Items]
Loss contingency, patents allegedly infringed upon, number	2

Stockholders' equity - Textual

Stockholders' equity - Textual information (Details) - USD ($)	3 Months Ended
	Dec. 28, 2019	Sep. 28, 2019
Equity [Abstract]
Stock repurchase program, authorized value		$ 50,000,000
Purchase of treasury stock (in shares)	227,241
Purchase price of common stock	$ 2,900,000
Average price per share (in dollars per share)	$ 12.85
Remaining authorized repurchase amount	$ 47,100,000

Stock-based compensation - Addi

Stock-based compensation - Additional Information (Details) - USD ($) $ in Millions	Dec. 28, 2019	Sep. 28, 2019	Dec. 28, 2019	Sep. 29, 2018
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			48 months
Unrecognized stock-based compensation expense	$ 37.3	$ 43.9	$ 37.3
Unrecognized stock-based compensation expense, period of recognition			1 year 9 months 18 days	2 years
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense	$ 63.2	$ 55.6	$ 63.2
Unrecognized stock-based compensation expense, period of recognition	3 years 3 months 18 days	3 years 4 months 24 days
2003 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercisable period			10 years

Stock-based compensation - Stoc

Stock-based compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 28, 2019	Sep. 28, 2019
Number of Options
Beginning balance (in shares)	37,155,568
Granted (in shares)	0
Exercised (in shares)	(1,136,193)
Forfeited (in shares)	(414,872)
Ending balance (in shares)	35,604,503	37,155,568
Options exercisable (in shares)	26,445,850
Options vested and expected to vest (in shares)	34,363,895
Weighted Average Exercise Price
Beginning balance (in USD per share)	$ 11.39
Granted (in USD per share)
Exercised (in USD per share)
Forfeited (in USD per share)
Ending balance (in USD per share)	11.49	$ 11.39
Option exercisable - Weighted Average Exercise Price (in USD per share)	10.53
Options vested and expected to vest - Weighted Average Exercise Price (in USD per share)	$ 11.39
Additional Information
Weighted Average Remaining Contractual Term	6 years 1 month 6 days	6 years 3 months 18 days
Option exercisable - Weighted Average Remaining Contractual Term	5 years 4 months 24 days
Options vested and expected to vest - Weighted Average Remaining Contractual Term	6 years
Aggregate Intrinsic Value	$ 126,622	$ 94,288
Options exercisable - Weighted Average Intrinsic Value	118,859
Options vested and expected to vest - Weighted Average Intrinsic Value	$ 125,725

Stock-based compensation - Rest

Stock-based compensation - Restricted Stock Unit Activity (Details) - Restricted Stock Units - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 28, 2019	Sep. 28, 2019
Number of Units
Outstanding, beginning balance (in shares)	6,716,786
Forfeited (in shares)	1,012,300
Exercised (in shares)	(425,503)
Granted (in shares)	(70,471)
Outstanding, ending balance (in shares)	7,233,112
Weighted Average Grant Date Fair Value
Outstanding, beginning balance (in usd per share)	$ 11.40
Outstanding, ending balance (in usd per share)	$ 11.84
Additional Information
Aggregate Intrinsic Value	$ 108,569	$ 90,744
Options vested and expected to vest (in shares)	5,726,008
Options vested and expected to vest - Weighted Average Exercise Price (in USD per share)	$ 11.85
Options vested and expected to vest - Weighted Average Intrinsic Value	$ 85,947

Stock-based compensation - St_2

Stock-based compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 13,204	$ 9,032
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	282	184
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	5,116	3,604
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	3,541	2,681
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 4,265	$ 2,563

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 1,656	$ 2,455
Discrete income tax benefit	$ 600

Net income (loss) per share a_3

Net income (loss) per share attributable to common stockholders - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Numerator:
Net income	$ 70,775	$ 61,667
Denominator:
Weighted-average shares of common stock - basic (in shares)	108,984,683	100,148,106
Weighted-average shares of common stock - diluted (in shares)	118,415,968	112,088,672
Net income attributable to common stockholders:
Net income (loss) per share attributable to common stockholders - basic (in USD per share)	$ 0.65	$ 0.62
Net income (loss) per share attributable to common stockholders - diluted (in USD per share)	$ 0.60	$ 0.55
Stock Options
Denominator:
Effect of potentially dilutive stock options and RSUs (in shares)	6,751,412	11,918,193
Restricted Stock Units
Denominator:
Effect of potentially dilutive stock options and RSUs (in shares)	2,679,873	22,373

Net income (loss) per share a_4

Net income (loss) per share attributable to common stockholders - Antidilutive Securities (Details) - shares	3 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive securities (in shares)	33,907,179	36,383,155
Stock options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive securities (in shares)	29,628,623	36,135,411
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive securities (in shares)	4,278,556	247,744

Business combination - Addition

Business combination - Additional Information (Details) - USD ($) $ in Thousands	Nov. 14, 2019	Dec. 28, 2019	Sep. 28, 2019
Business Acquisition [Line Items]
Estimated goodwill		$ 15,287	$ 1,005
Snips SAS
Business Acquisition [Line Items]
Percentage of business acquired	100.00%
Total purchase considerations	$ 36,300
Cash paid to shareholders	35,600
Contingent consideration liability	700
Finite-lived intangible assets		25,200
Net assets acquired, excluding goodwill		3,200
Estimated goodwill		$ 14,300
Acquisition related diligence costs	$ 1,400